Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) reported better-than-expected earnings for its second quarter, but lowered its 2019 sales guidance.
The Dallas-based Dave & Buster’s reported that total revenues increased 8.0% to $344.6 million from $319.2 million
Its number of stores increased 11.1% to 130 from 117
Comparable store sales, however, decreased 1.8%. Net income totaled $32.4 million, or $0.90 per diluted share, vs. net income of $33.8 million, or $0.84 per diluted share
PLAY launched Men in Black: Galactic Getaway, the Company’s fourth proprietary virtual reality title
Dave & Buster’s xxpanded share repurchase authorization by $200 million to $800 million; repurchased 3.4 million shares for approximately $137 million and paid a quarterly cash dividend of $0.15 per share
"We continue to deliver strong revenue and earnings per share growth – including record second quarter sales, EBITDA and EPS – while investing for the future and returning substantial capital to shareholders through dividends and share repurchases," said CEO Brian Jenkins
"We are executing on five near-term priorities to improve performance and capitalize on the growing consumer demand for our offerings. By realizing operational efficiencies and cost savings, we will fund investments to fuel comp sales growth going forward.
"We are acting decisively to accelerate near and long-term value creation, and to deliver superior returns for all Dave & Buster’s shareholders."
Shares slumped $2.97, or 6.8%, to $40.75
